President Trump has signed into law a resolution overturning the Consumer Financial Protection Bureau’s limits on overdraft fees. Passed as a Congressional Review Act resolution last month and championed by ABA on Capitol Hill, the resolution means that the CFPB cannot take issue a similar rule in the future.
The CFPB overdraft rule — now voided — required banks with at least $10 billion in assets to cap overdraft fees at $5 unless they voluntarily set a cap that covers their actual costs and losses or treat overdraft protection as a loan covered by the Truth in Lending Act. ABA, the Mississippi Bankers Association and others promptly challenged the rule in court.
“While we have been confident in the merits of our case, we are pleased to see President Trump and Congress repeal this unlawful rule through CRA,” ABA and the other plaintiffs said in a statement. “President Trump’s signature doesn’t just preserve access to this essential financial lifeline for millions of Americans who need it; it also means our litigation against the CFPB challenging this rule is now moot.”
